The market value of a leasehold property in Hatton is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be finalised prior to the 80 year cut off point. Leasehold Reform legislation entitles Hatton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Hatton with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Regardless of whether you are a tenant or a freeholder in Hatton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Hatton valuers.
Last year Jayden, started to get close to the eighty-year threshold with the lease on his garden apartment in Hatton. Having bought his flat two decades ago, the unexpired term was of no importance. Thankfully, he became aware that he would imminently be paying an escalated premium for Extending the lease. Jayden arranged for a lease extension just ahead of time in March. Jayden and the landlord who owned the flat above ultimately agreed on an amount of £5,500 . If the lease had gone below eighty years, the sum would have escalated by at least £900.
Dr Imogen Vincent acquired a one bedroom flat in Hatton in April 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative homes in Hatton with a long lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease expired in 2090. Considering the 65 years left we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Hatton property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The remaining number of years on the lease was 82.93 years.